US Moves to Block Chinese AI Firms From Renting Advanced Chips Abroad

Nov 12, 2026
The Commerce Department is finalising a rule to stop Chinese AI firms from remotely using advanced chips in data centres in seven more countries, The Information reports.

The U.S. Department of Commerce is preparing to finalise a rule that would stop Chinese AI companies from remotely using advanced AI chips in data centres outside China, The Information reported, according to Investing.com. The rule would extend the Bureau of Industry and Security's chip controls to seven more countries, including Malaysia, Singapore and Thailand, and could be announced this month. Commerce is still consulting other agencies before it can be finalised.

Renting computing power abroad has been the main way Chinese developers reach Nvidia's newest chips without importing them. Chinese AI companies are now trying to lock in overseas Nvidia capacity before the route closes, three people told Reuters, as carried by BusinessDay. They fear the scandal around Nvidia chief executive Jensen Huang will add momentum to the Remote Access Security Act, which passed the House 369-22 in January and awaits a Senate vote.

Investors reacted first. Alibaba fell about 5% and Tencent about 1.5% in Hong Kong trading on Thursday, MLQ reports.

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